Tuya Inc. (02391) has announced its financial results for the full year 2025. In the fourth quarter, total revenue reached $84.5 million, representing an increase of approximately 3.0% year-over-year. The overall gross margin was 47.6%, a slight decrease of 0.2 percentage points compared to the same period last year. Net profit for the quarter was $19.3 million, compared to $9.8 million in the fourth quarter of 2024.

For the full year 2025, total revenue amounted to $321.8 million, an increase of about 7.8% year-over-year. The annual gross margin improved to 48.2%, rising by 0.8 percentage points. Net profit for the year was $57.89 million, marking a substantial increase of 1058.5% compared to the previous year.

The company had approximately 2,100 PaaS customers in the fourth quarter of 2025, consistent with the number from the fourth quarter of 2024. The total customer count for the quarter was around 3,000, also unchanged year-over-year. Over the trailing twelve months ended December 31, 2025, there were 291 premium PaaS customers, compared to 298 in the same period a year prior. These premium customers contributed approximately 88.3% of PaaS revenue in Q4 2025, up from about 87.3% in Q4 2024.

The Dollar-Based Net Expansion Rate (DBNER) for PaaS was 102% for the trailing twelve months ended December 31, 2025, compared to 122% for the comparable period in 2024. As of the end of 2025, the number of registered AI developers on the platform exceeded 1.801 million, a 37% increase from the approximately 1.316 million developers registered as of December 31, 2024.

Mr. Wang Xueji, Founder and CEO of Tuya, commented, "We continued to advance steadily amidst a complex and volatile operating environment, achieving solid revenue growth for the year while further enhancing profitability and operational efficiency. The stability and improvement in our gross margin reflect our value proposition and technology pricing power within the industry, as well as the resilience of our core platform business structure. Our sustained healthy net profit and operating cash flow further validate the sustainability of our business model and our ability to translate disciplined operations into robust financial performance. Strategically, we continue to advance our 'Platform Empowerment + Application Expansion' path for AI+IoT, accelerating the systematic integration of AI capabilities into our platform and device ecosystem. At CES, we launched the AI-powered smart living assistant Hey Tuya and showcased the underlying Physical AI Engine (PAE) architecture. This marks a significant step in extending our AI capabilities from the platform layer to cross-device, scenario-based product experiences, transitioning from technology output to the implementation of scenario-specific products. By the end of 2025, the number of registered AI+IoT developers on our platform reached 1.80 million, a 37% increase. The cumulative number of AI Agents developed on the Tuya platform has reached approximately 16,000. The penetration rate of AI capabilities in end-products continues to rise, with commercialization progressing steadily. AI is evolving from a single functional add-on to replicable AI applications and a sustainable revenue stream, driving a structural upgrade in platform value. Looking ahead, we will continue to strengthen our AI-native platform capabilities and developer ecosystem, enhancing our long-term value creation capacity supported by a robust business model and a solid financial foundation."

Mr. Yang Yi, Director and CFO of Tuya, added, "In the fourth quarter, the company's profitability continued to improve, with GAAP operating margin turning positive year-over-year and the net profit margin increasing significantly, primarily due to optimized expense structure and operating leverage. While maintaining stable revenue growth, we achieved a phased improvement in profit margins. For the full year 2025, the company restored GAAP profitability alongside revenue growth, with operating cash flow remaining robust. This reflects our ongoing optimization in cost discipline and resource allocation. Concurrently, building on our existing customer and developer ecosystem and driven by continuous iteration of AI capabilities, we are accelerating the push towards recurring revenue models represented by cloud software and value-added services. Our SaaS and other revenue achieved double-digit year-over-year growth in 2025, outpacing the overall revenue growth rate, indicating a continued optimization of our revenue structure. As of year-end, the company's balance sheet remains strong, with cash and liquid investments exceeding $1 billion and no interest-bearing debt. This strong liquidity provides ample security for long-term strategic investments and navigating external volatility."